This post may contain affiliate links, which means I may earn a small commission if you make a purchase through them — at no extra cost to you. I only share products and tools I truly love and recommend!

As a boutique owner, you’re being pulled in a million different directions – marketing, customer service, ordering more inventory – bookkeeping might be the last thing on your mind. But staying on top of your bookkeeping records throughout the year, and not just waiting until January, will be key in making sure that you have a stress-free tax season.

Let’s look at a few simple ways that you can keep your bookkeeping organized & accurate throughout the year so you can make that a reality. 

Use a bookkeeping software to organize your bookkeeping records

This is going to be the biggest factor in making sure your bookkeeping is organized. I know using spreadsheets is a popular & cost effective option, but it is definitely not the most efficient way to do so. Plus, by using a spreadsheet, there is no real way to double check and verify that all your totals for the year are correct…something we’ll talk about in just a few minutes.

Without a doubt, my favorite bookkeeping software is Quickbooks Online. There are so many automation features that will help you save time so you can spend the LEAST amount of time on your bookkeeping as possible. You can check out a few of these features in this post. 

Know what you can deduct, and track them appropriately in your bookkeeping records 

Knowing what you’re allowed to deduct on your taxes will help you know exactly what you need to be tracking throughout the year. As a general rule, any type of expense that is ordinary and necessary for you to run your business can be a tax deduction. There are a few specific rules & limits around certain categories like meals, gifts, and mileage/vehicle expenses. 

If you’re looking for a downloadable/printable guide that you can reference throughout the year, feel free to download my Tax Deduction Guide for Retail Boutique Owners that you can refer to as you setup & manage your own bookkeeping. 

I also use these same expense categories in my Retail Chart of Accounts Template that you can download and upload directly into your own Quickbooks Online account to make sure you’re tracking your spending in all these areas. 

Review your bookkeeping records for accuracy on a monthly basis

There’s a bookkeeping term for for this, and it’s called “reconciliation”. Really, that just means that you are comparing your bookkeeping records to what’s listed on your bank, credit card and payment processor statements. Ideally, this is done on a monthly basis, every time a new statement is provided.

If you are using Quickbooks, this process is pretty quick, as Quickbooks does most of the heavy lifting for you. Unfortunately, if you’re using spreadsheets for your bookkeeping, there isn’t a great way to do this, other than manually comparing each and every number on your statements to your spreadsheets. And who has time for that?!

Keep all your documents organized

By documents, I mean anything that supports, or proves, the numbers in your bookkeeping records. Things like receipts & invoices to prove purchases, sales summary reports from your Shopify account, bank & credit card statements, and payment processor statements/reports.

You want to make sure all these things are organized in a way that you know EXACTLY where everything is saved in case you ever need to track it down to show your tax preparer, an auditor, or maybe just to refer to something yourself

If you’re current organization process includes stuffing everything in a shoebox, then you can check out this post  where I give a few different recommendations & suggestions to help improve this process. 

---

I know that bookkeeping isn’t the most glamorous and exciting part of owning your own business, but that doesn’t mean it has to be miserable! By setting up some solid processes & systems, you can ensure it’s as painless of a process as possible! If you need help getting your QuickBooks Online up and running and instructional videos on EXACTLY how to do all these bookkeeping tasks, then I welcome you to check out my signature course, Bookkeeping Made Simple for Boutiques. 

If you just want a quick rundown of some of these things in greater detail, or if you’re interested in learning more about Bookkeeping Made Simple for Boutiques, I want to invite you to watch this free on-demand training on what you need to know to DIY your own boutique bookkeeping.